Cost allocation and communication

On some cost allocation problems in communication networks ∗

New technologies prompted an explosion in the development of communication networks. Modern network optimization techniques usually lead to a design of the most profitable, or the least cost network that will provide some service to customers. There are various costs and gains associated with building and using a communication network. Moreover, the involved multiple network users and/or owners...

Optimization of Bandwidth Allocation in Communication Networks with Penalty Cost

In this paper, we present an analysis on optimization and risk management in Communication Networks (CNs). The model is proposed for offline traffic engineering optimization, which takes a centralized view of bandwidth allocation, performance control, and risk control of network profit shortfall. First, we introduce a linear penalty cost in the CN optimization model and derive the optimal bandw...

Cost Allocation

Cost Effectiveness and Resource Allocation

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Transmission Benefits and Cost Allocation

" The cost of transmission facilities must be allocated to those within the transmission planning region that benefit from those facilities in a manner that is at least roughly commensurate with estimated benefits. " (FERC 2010, p. 91) Benefits include reliability, economic and public policy related impacts. Turning the principle into a workable policy is important as a support for restructured...